Nepali traders against India starting operations at ICP

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Press Trust of India Kathmandu
Last Updated : Jun 05 2016 | 10:13 PM IST
Traders in Nepal have expressed concern over India starting operations on its new Integrated Check Post on the Nepal-India border, saying trading through the ICP may hit commerce via the Raxaul-Birgunj customs point.
India has started preparations to start operations at the ICP on its side of the Birgunj-Raxaul border in Bihar, but the infrastructure on Nepal's side was yet to be completed.
Indian authorities inaugurated the ICP on their side on Friday and all services required for export-import including customs, immigration, quarantine and banks were being built on the either side of the international border.
Nepali traders voiced concern that commencing the ICP operations on Indian side could affect normal trade through the Birgunj customs point.
They said they will now have to cover a long distance to reach the ICP for custom clearances, media reports said here.
Indian authorities will conduct the clearance-related documentation at the ICP and send goods through the Birgunj customs.
The two centres are separated by nearly 13 kilometres.
Nepali traders said this would affect export-import through the "open" Birgunj border.
"For example, tankers receiving loading from Indian Oil Corporation (IOC) near Raxual customs will have to reach Pantaoka-based ICP for customs clearance," an importer said.
"The tankers need to cross a railway track."
The Nepali ICP is being built at Sirsiya which is close to the Indian ICP. Once the Nepali ICP is completed, Birgunj customs will shift there.
According to Nepali officials, 25 per cent work on the ICP on the Nepali side is yet to be completed. Not only in the import petroleum products, export-import of other goods are also likely to be affected.
According to President of Birgunj Chambers of Commerce and Industry Pradeep Kediya, Nepal's trade will be heavily affected if the ICP on the Indian side comes into operation.
"Importers will be affected. So we would like to request the Indian ICP not be start its operation until the Nepali ICP is ready," he said.
Former President of BCCI Ashok Baidya said Nepali importers might have to pay millions of rupees in demurrage charges.
"More than 1,000 trucks enter Nepal through Birgunj and traffic jam due to train movement could force importers to pay demurrage charges heavily.
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First Published: Jun 05 2016 | 10:13 PM IST

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